What is a Section 32 statement?
A Section 32 statement, also called the vendor's statement, is a legal disclosure document that a seller in Victoria must give a buyer before the buyer signs the contract of sale. It sets out key facts about the property, including title details, zoning, outgoings and any restrictions, so you know what you are buying before you commit. It usually sits alongside the contract of sale.
What must a Section 32 statement disclose?
The statement pulls together the information a buyer needs to make an informed decision. It must cover the title and any mortgages, easements, covenants or caveats, the outgoings that come with the property, planning and zoning controls, and building permits from recent years. If the property is part of an owners corporation, an owners corporation certificate must also be attached, unless the owners corporation is inactive (no annual general meeting, no fees and no insurance in the preceding 15 months), in which case the seller discloses that instead.
What a Section 32 must disclose, and what to check
| What it covers | What's disclosed | Red flags to check |
|---|---|---|
| Title | Title details and the plan, plus any mortgages, easements, covenants or caveats | An easement or covenant that limits building; a caveat that isn't explained |
| Outgoings | Council rates, water, land tax and any owners corporation fees | Arrears, or a looming special levy |
| Planning and zoning | The zoning and any planning controls or overlays | An overlay (heritage, flood, bushfire) that restricts what you can do |
| Building works | Building permits from the last 7 years, and if the seller did owner-builder work in recent years, a defects report and any required warranty insurance | Unapproved or uninsured building work |
What happens if a Section 32 is false or incomplete?
If the statement contains false information, or leaves out information the seller was required to provide, the buyer may have the right to withdraw from the contract. That right generally applies at any time before you accept title and become entitled to possession. A court can excuse an honest and reasonable mistake where you are in as good a position, so this right is not automatic. A seller who knowingly or recklessly supplies false information, or fails to supply all the required information, can also face serious consequences, so the disclosure obligation is taken seriously.
Why review the Section 32 with a conveyancer before signing?
Asserting your rights under a contract after the fact, inside or outside the court system, is usually costly and time-consuming. It is far better to catch problems early. We recommend you do your due diligence and have a conveyancer or solicitor review the Section 32 before you sign, so any concerns can be raised while you can still act on them. See also why it pays to engage a conveyancer before you sign.
General information only, not legal advice. Conveyancing law varies by state and changes over time; confirm your situation with a licensed conveyancer or solicitor.
